Forex Factory (https://www.forexfactory.com/forum.php)
-   Trading Systems (https://www.forexfactory.com/forumdisplay.php?f=71)
-   -   Dancing with EMA (https://www.forexfactory.com/showthread.php?t=329834)

zebulon Dec 5, 2011 5:06pm | Post# 1

Dancing with EMA
 
1 Attachment(s)
Hi everybody !

That 's the new simple system i'm testing since september. It looks very promising : trading EUR/USD and GBP/USD and EUR/JPY, you will see this system has been able to bring almost 2400 pips since september.

All is based on price action but we need only 2 indicators :
50 EMA, we are going to dance with her in the trend.
5 SMA is just here to avoid range periods.

TF 4H
Let's have a look to the chart :
Click to Enlarge

Name: 5-12-2011.jpg
Size: 86 KB

zebulon Dec 5, 2011 5:29pm | Post# 2

RULES FOR ENTRY
 
1 Attachment(s)
You can see on this chart we enter short the 1st november at the open of this candle at 1.3814.
Why ? Because the candle before closed more than 100 pips from the EMA 50.
Click to Enlarge

Name: 11-12-05 23 28 37.jpg
Size: 86 KB

zebulon Dec 5, 2011 5:35pm | Post# 3

So we sell EUR/USD at 1.3814.
The stop loss is 100 pip ( 1.3914).

Now, we are waiting, if our stop is not touched, we are going for the next step.

Aztrader2 Dec 5, 2011 5:39pm | Post# 4

You can see on this chart we enter short the 1st november at the open of this candle at 1.3814.
Why ? Because the candle before closed more than 100 pips from the EMA 50.
Hi zebulon, welcome with your new thread...
It seems very nice.

About the rules:
Do we need a cross of the faster ema too? And what about SL & TP?

Thanks!

EDIT: You've already answer about SL........

zebulon Dec 5, 2011 5:45pm | Post# 5

1 Attachment(s)
The next step is selling again when the price is touching the 50 EMA, but we need at least 80 pips between this level and the previous sell order.

So we sell again at 1.3726 the 11 november.
Our stop loss is 100 pips (1.3826)
The stop loss for the first order is also moved to 1.3826
Click to Enlarge

Name: 11-12-05 23 41 51.jpg
Size: 93 KB

zebulon Dec 5, 2011 5:54pm | Post# 6

1 Attachment(s)
Thanks Aztrader, now, we don't care about 5 SMA, we will see later why we need it...

Now we are waiting for our stop loss to be touched, or for the next step :

The 18 november, we sell again at 1.3594 and all our SL are moved to 1.3694.
Click to Enlarge

Name: 11-12-05 23 54 07.jpg
Size: 90 KB

zebulon Dec 5, 2011 6:07pm | Post# 7

end of the trade
 
1 Attachment(s)
the 29 november, we sell again at 1.3407, all our SL are moved to 1.3507.

The SL is trigerred one day later and we win a total of 513 pips.
Click to Enlarge

Name: 11-12-06 00 04 39.jpg
Size: 95 KB

zebulon Dec 5, 2011 6:19pm | Post# 8

1 Attachment(s)
Because the last candle closed more than 100 pips above the 50 EMA, we buy at the open of the next candle at 1.3516 with a SL at 1.3416.

Unfortunately, the SL is touched.

Since 1st december, we had no signal to buy or to sell, because no candle closed more than 100 pips from 50 EMA. We are in a range, and only the trend is good for us.

If the 5 SMA is going up and down crossing several times the 50 EMA, that a good signal to go to the beach or for some shopping... We can avoid range period
Click to Enlarge

Name: 11-12-06 00 12 19.jpg
Size: 79 KB

Aztrader2 Dec 5, 2011 6:31pm | Post# 9

1 Attachment(s)
Because the last candle closed more than 100 pips above the 50 EMA, we buy at the open of the next candle at 1.3516 with a SL at 1.3416.

Unfortunately, the SL is touched.

Since 1st december, we had no signal to buy or to sell, because no candle closed more than 100 pips from 50 EMA. We are in a range, and only the trend is good for us.

If the 5 SMA is going up and down crossing several times the 50 EMA, that a good signal to go to the beach or for some shopping... We can avoid range period
Bad luck.......
But in my charts, price never closed 100 pips above 50 EMA ( I put 2 levels in the property of 50 Ema: +100 & -100, so it's visually easy to see the distance of the close)
Click to Enlarge

Name: eu 4h 50 ema.jpg
Size: 91 KB

zebulon Dec 6, 2011 2:14am | Post# 10

Bad luck.......
But in my charts, price never closed 100 pips above 50 EMA ( I put 2 levels in the property of 50 Ema: +100 & -100, so it's visually easy to see the distance of the close)
So you had no signal, and you didn't loose 100 pips...
Brokers are different and 4H candles don't start at the same hour...

zebulon Dec 6, 2011 2:28am | Post# 11

We will see together how the system is working.
At the moment, EUR/USD, GBP/USD and EUR/JPY are ranging.
EMA 50 is flat and the price is not far from EMA.
Time frame 4H allows us to do something else and not staying all day in front of the screen. Actually it is dangerous to go in the market, price will go north or south ??? we don't know. Let price action tell us the truth when it will be the moment.

hc2000 Dec 6, 2011 5:24am | Post# 12

Zebulon, your system seems very simple and interesting. Thanks for sharing! Going to have a try!

sniperfxmy Dec 6, 2011 7:02am | Post# 13

Zebulon

Indeed I like simple trading method like yours with minimum use of indicator may be just 1 or most 2.

I use PA incorporate with MA and/or BB.

I will often drop this thread.

qprfc Dec 6, 2011 7:13am | Post# 14

Zubulon thx for posting your system i have set up my charts 3 prs and will trade along,keep us informed of possible entrys so we can follow along.
From my understanding the stoploss is 100 pips and the 2nd 3rd entries have to be at least 80 pips lower from previous entry,always keeping your stop 100 pips behind the price.
Is this correct...
Regards

zebulon Dec 6, 2011 8:58am | Post# 15

Zubulon thx for posting your system i have set up my charts 3 prs and will trade along,keep us informed of possible entrys so we can follow along.
From my understanding the stoploss is 100 pips and the 2nd 3rd entries have to be at least 80 pips lower from previous entry,always keeping your stop 100 pips behind the price.
Is this correct...
Regards
The stoploss for all the orders is 100 pips from the last order. It is not a trailing stop. That means we will loose 100 pips for the last order. That's the price to pay to go further.

zebulon Dec 7, 2011 3:31am | Post# 16

another example
 
1 Attachment(s)
another example with GBP/USD:
10 october, we bought at 1.5618 as the previous candle closed morethan 100 pips from EMA 50.
We bought again at 1.5711 and 1.5976
We were stopped at 1.5876 with a global win of 323 pips.
Click to Enlarge

Name: 11-12-07 09 18 08.jpg
Size: 85 KB

sniperfxmy Dec 8, 2011 7:19am | Post# 17

another example with GBP/USD:
10 october, we bought at 1.5618 as the previous candle closed morethan 100 pips from EMA 50.
We bought again at 1.5711 and 1.5976
We were stopped at 1.5876 with a global win of 323 pips.


Pls. keep posting.

zebulon Dec 8, 2011 9:03am | Post# 18

No opportunities to trade now. Prices are ranging .
Waiting for a strong trend ...

sniperfxmy Dec 8, 2011 9:56am | Post# 19

No opportunities to trade now. Prices are ranging .
Waiting for a strong trend ...
Don't worry. Let is come to you. (I am practicing to be patience)

zebulon Dec 8, 2011 10:07am | Post# 20

Don't worry. Let is come to you. (I am practicing to be patience)
Yes ! Patience is the key !
the trend will come later.


© Forex Factory